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Express Engineering, a leading UK subsea energy products company, has sold off part of its business to focus on expanding its capabilities in the oil and gas market.
Gateshead-based Express Engineering, a global leader in innovative manufacturing, assembly, and testing solutions for subsea production systems, has sold its aerospace division for an undisclosed sum.
The proceeds will be re-invested to add additional manufacturing capability that will enable Express Engineering to grow and support customer demand for new innovative products, while improving overall competitiveness.
Gary Thirlwell, managing director of Express Engineering, said: “We have disposed of the aerospace business to focus resources on our core subsea products. Aerospace was a small, albeit profitable division, but is not part of our strategic focus.
“During the last year or two, we have been transforming Express Engineering through a new product strategy and investment in infrastructure that includes a new test and assembly facility. To continue to compete in global markets and provide customers with top quality subsea products and services we need to be fully focussed on that task and sector.
“More large, global companies are outsourcing their manufactured products and sub systems for flexibility and competitiveness and looking to establish long-term partnerships with companies like Express that offer specialist, turn-key solutions.”
Express Engineering is a market leader and has more than 20 years’ experience in the manufacture, assembly, and test of subsea actuators, connection systems, connector sub-assemblies and mechanical and hydraulic subsea tooling.
The aerospace division has been acquired by Paralloy limited a Nimbus LLC company, which has operations in Billingham, Middlesbrough and Sheffield as it continues to expand in aerospace and other sectors. The sale was formalised several months ago but the relocation of jobs and assets from Team Valley to a new facility near Middlesbrough was only recently completed.
Gary Thirlwell added: “We were delighted to find a buyer for this successful business; one who is committed to investing in it to make it a bigger enterprise. We’re also pleased to see that the skilled workforce, most of whom commuted to Team Valley from Teesside and North Yorkshire, will now be working much closer to home.”
Since embarking on a refocused business strategy at the end of 2018, Express Engineering has seen sales in the oil and gas sector grow significantly resulting in a jump in revenues to more than £35m for 2020.
Working with customers like TechnipFMC, Baker Hughes and Aker Solutions, Express Engineering is a significant exporter of products, operating within various geographical areas, including the North Sea, Gulf of Mexico, east coast of Brazil, east and west coasts of Africa and Australasia.